Fed Signals to Investors It’s Safe to Buy Stocks

Markets from long-term Treasury securities to gold mining shares surged Wednesday after the Federal Open Market Committee indicated it would maintain a relatively restrained pace of interest-rate increases with three hikes penciled in for 2017.

As universally expected after a parade of Fed speakers who signaled a further move from emergency-level rates was appropriate, the FOMC raised its federal funds rate target by 25 basis points...